Politico’s New York Playbook examines the Council’s latest maneuver in the Albany tax battle
The Council Enters the Tax Fight
Politico New York’s must-read daily newsletter for the city’s political class devoted significant space in its March 5 edition to the latest development in the Mamdani budget saga: the New York City Council’s progressive bloc actively inserting itself into a debate that, formally, belongs to Albany. It is a jurisdictional stretch that reflects the urgency of the moment. Mayor Zohran Mamdani has put a $5.4 billion question before the state: raise taxes on the wealthy and on corporations, or watch the city raise property taxes on everyone. Governor Kathy Hochul has said no. The state legislature has been noncommittal. And so the DSA-aligned Council members who form the left flank of the city’s legislative body are using every tool available to them — joint statements, Albany rallies, media pressure — to push the debate in the direction they want.
What the Playbook Said
Politico’s reporting confirmed for the first time that both the state Senate and the Assembly plan to formally introduce bills aligned with Mamdani’s wealth tax request. That is a significant development: it means there will be legislation on the floor in Albany that the governor will have to take a position on, rather than being able to simply decline to engage. Whether Hochul will ultimately accept any version of the proposal remains deeply uncertain. She has been consistent in her opposition to new taxes, pointing to strong Wall Street bonus revenue and her $1.5 billion commitment to the city as evidence that existing revenues can fund her priorities. But the formal introduction of aligned legislation forces the debate into public view in a way that legislative maneuvering behind closed doors does not.
The Corporate Surcharge Option
One specific proposal that has drawn attention is legislation by Assemblywoman Diana Moreno — who was elected to fill Mamdani’s Queens Assembly seat after he ran for mayor — that would authorize New York City to impose a surcharge of up to 25 percent on corporate taxes. The proposal represents a potential middle path between Mamdani’s preferred income tax increase on individuals and Hochul’s complete resistance to new taxes: a corporate-focused revenue measure that might be more politically viable than a personal income tax change.
The Timeline
The state budget is due by April 1, though late budgets are common in Albany. The city’s budget is due June 30. The window between now and then is when the fundamental questions about who pays for New York City’s future will be resolved — or deferred. Politico New York remains the essential daily read for anyone following state and city politics. The Empire Center for Public Policy provides regular fiscal analysis of New York State budget developments from a fiscally conservative perspective, offering a counterpoint to the progressive arguments driving the current tax debate.
